Auto Loan Calculator
Modify the values below and click Calculate to instantly see your monthly car payment, total interest, tax, fees and overall cost.
Auto Loan Details
Total Price & Monthly Payment EstimatorSave this calculation or print for your records when visiting the dealership.
| Year | Interest | Principal | Ending Balance |
|---|---|---|---|
| 1 | $1,835.98 | $7,222.21 | $32,777.79 |
| 2 | $1,466.48 | $7,591.71 | $25,186.08 |
| 3 | $1,078.07 | $7,980.12 | $17,205.96 |
| 4 | $669.80 | $8,388.40 | $8,817.56 |
| 5 | $240.63 | $8,817.56 | $0.00 |
About This Auto Loan Calculator
This Auto Loan Calculator is designed primarily for car buyers in the United States, but anyone around the world can use it by adjusting the tax and fee fields to match local rules. Simply enter your vehicle price, loan term, interest rate, down payment, and other details to see your estimated monthly EMI, total loan interest, and the overall cost of owning the car.
If you already know the monthly payment but want to work out the maximum car price you can afford, you can use a reverse or “monthly payment to price” car loan calculator. That type of calculator solves the opposite problem – it tells you how much car you can buy for a given budget.
How Auto Loans Work
Most people do not pay for a car completely in cash. Instead, they borrow the money through an auto loan from a bank, credit union, online lender, or directly at the dealership. Auto loans are secured loans, which means the car itself is the collateral. If the borrower stops making payments, the lender has the legal right to repossess the vehicle.
Typical car loan terms in the U.S. range from 36 to 84 months. Each month you repay part of the principal (the amount borrowed) plus interest (the lender’s charge for the loan). Our car loan calculator breaks these amounts down so you can clearly see how much of each payment reduces your balance and how much is pure interest.
Dealer Financing vs. Direct Lending
When it comes to financing a car, you usually have two broad choices:
- Direct lending – You get an auto loan directly from a bank, credit union, or online lender. After you agree on a price with the dealer, you use this pre-approved loan to pay for the car.
- Dealership financing – The dealer arranges the loan for you. The paperwork is completed at the dealership, but your loan is often serviced by a partner bank or a captive finance company tied to the car brand.
Direct lending gives you more negotiating power because you can walk into the showroom with financing already in place. That pressure often encourages dealers to offer better prices or match your interest rate. Dealer financing, on the other hand, is convenient for buyers who do not want to shop around, and manufacturers often use it to advertise attractive offers such as 0% or very low APR deals on new cars.
Vehicle Rebates and Incentives
Many manufacturers offer cash rebates or incentives to boost sales. A rebate directly reduces the price you pay for the car, but depending on your state, it may or may not reduce the taxable amount. In some places, sales tax is calculated on the full sticker price even after a rebate; in others, tax is based on the discounted price.
Rebates are most common on new vehicles. Used car rebates exist but are less frequent because it is harder to standardize the value of a pre-owned vehicle. When you enter a rebate in the “Cash Incentives” field of this car loan calculator, it lowers the financed amount and may reduce your monthly payment.
Common Car Buying Fees
The purchase price of the car is only one part of the total cost. There are several additional fees that may apply, and you can include them in the “Title, Registration & Other Fees” box:
- Sales tax – Most U.S. states charge sales tax on vehicles. Our tool lets you enter your local percentage so you can see how it affects your overall cost.
- Document fees – Dealers often charge for processing paperwork such as the title and registration.
- Title and registration fees – Government charges to legally record and register the vehicle in your name.
- Destination fees – A shipping fee that covers transportation from the factory to the dealership.
- Advertising or “add-on” fees – These may appear on the invoice for regional advertising or special dealer packages. Always ask for a clear explanation of any extra charges.
- Insurance – Full coverage auto insurance is typically required when you finance a car. It is not part of your loan, but it is a major part of your monthly car budget.
Some of these fees can be financed as part of the loan, while others are paid upfront. Our auto loan calculator assumes that taxes and fees are paid upfront (like in the sample calculation), but you can adjust the numbers to model your situation.
Smart Strategies for Auto Loans
1. Prepare Before You Visit the Dealer
The best car loan strategy starts long before you sit down with a salesperson. Decide on a realistic budget for your monthly payment, research the models you are interested in, and check current market prices online. Getting pre-approved by a bank or credit union gives you a clear picture of what you can afford and strengthens your bargaining position.
2. Understand the Role of Credit
Your credit score is one of the biggest factors in the interest rate you are offered. Borrowers with strong credit profiles generally qualify for lower APRs and save more money over the life of the loan. If your score is low, consider improving it before you apply—pay down existing debts, make payments on time, and avoid opening too many new accounts at once.
3. Cash Back vs. Low Interest Rate
Sometimes manufacturers give you a choice: a cash rebate or a discounted interest rate. The right option depends on the size of the rebate, the standard interest rate, and how long you plan to keep the loan. A rebate lowers the upfront price immediately, while a lower APR saves money month after month. Our calculator can help you compare both options by changing the “Cash Incentives” and “Interest Rate” values.
4. Paying Off Your Auto Loan Early
Extra payments toward the principal can reduce total interest and shorten your loan term. However, some lenders charge prepayment penalties or have specific rules about early payoff. Always read your contract carefully and ask whether there are any fees for paying off the car loan before the scheduled end date.
5. Consider Alternatives: Used Cars or Leasing
A brand-new car loses a significant chunk of its value as soon as it leaves the dealership. Buying a gently used vehicle that is only a few years old can dramatically reduce the upfront price and your monthly payment. Our auto finance calculator works just as well for used cars—simply enter the used car price instead of the new one.
If you enjoy driving new cars every few years and want lower monthly payments, leasing may also be an option. A lease is essentially a long-term rental with mileage limits and other conditions. For detailed lease comparisons, you can use an auto lease calculator alongside this car loan tool.
Paying Cash vs. Financing a Car
Paying in cash for a car comes with clear advantages: no monthly payments, no interest charges, and complete ownership from day one. You are free to sell the vehicle whenever you want and choose less expensive insurance coverage if allowed by local regulations.
Cash purchases also prevent “overbuying.” When you limit yourself to the money you have in hand, it is easier to stay within budget. With financing, it is tempting to stretch the term or accept a slightly higher payment for a more expensive model.
On the other hand, there are times when a low-interest loan can be sensible even if you have the cash. If the dealer offers a very low APR and you can invest your savings at a higher return, financing part of the car purchase may be more efficient. Financing and making every payment on time can also help build a strong credit history.
Understanding Trade-in Value
Trading in your current vehicle reduces the amount you need to finance, but you may not get as much as you would from a private sale. The trade-in value the dealer offers depends on the car’s age, mileage, condition, and local demand.
In many states, sales tax is charged on the difference between the new car price and the trade-in value. For example, if you buy a car for $50,000 and the dealer gives you $10,000 for your trade-in, tax may be calculated on $40,000 instead of the full price. Other states do not offer this tax reduction and charge sales tax on the entire vehicle price.
This Auto Loan Calculator allows you to enter both the trade-in value and any remaining balance you still owe on that vehicle. The tool automatically figures out the net effect on your new loan and updates the monthly payment and amortization schedule.
Use the Auto Loan Calculator Before You Sign
Before committing to any car finance agreement, plug the numbers into this Auto Loan Calculator and review the full picture: monthly payment, total interest, taxes, fees, and total cost of ownership. A few minutes of planning can help you avoid surprises and choose a vehicle that truly fits your budget.
